In a tumultuous time for the global economy, the Australian manufacturing sector is facing strong headwinds. It’s imperative that businesses remain flexible and adapt to changing industry outlooks in order to keep growth prospects strong over the next few years.
Research undertaken by KPMG International examines the global issues that face the manufacturing industry today. This report discusses the implications of those issues on Australian manufacturing organisations and explores various methods and tools to enable businesses to get ahead of the curve and be a next generation market leader.
Although the global economy is facing a turbulent period, the growth prospects for the next three years remain positive. CEOs remain confident that Australian manufacturing will experience profitable growth despite the possibility of a recession in 2023 – so how will manufacturing companies manage to expand and stay on track with their profit projections in light of the prospective recession?
With geopolitical conflict encouraging many companies to nearshore or onshore their operations, the manufacturing industry in Australia is set to expand and become competitive not only locally, but globally.
As the industry grows, ESG objectives will be of increasing concern for consumers, employees and CEOs alike. Moving forward, manufacturers are likely to feel pressure to be more transparent about their ESG goals, particularly when it comes to addressing social issues, sustainable production and DEI. Experts advise CEOs to take an enterprise-wide approach to ESG initiatives to create maximum value.
KPMG Australia helps manufacturing businesses build strategies to tackle Industry 4.0 challenges and become market leaders. Our insights into the short-term future of the sector, from ESG to digital opportunities, provide a practical foundation from which manufacturers can grow into innovative, influential Industry 4.0 Leaders.
Download the report
Australian Manufacturing:
Discover Growth Amid Turbulence
Methods and tools for Australian businesses to stay ahead of the curve.
Key insights
Growth prospects
CEOs remain confident of growth prospects over the next three years, despite the global economy facing challenges. CEOs are tackling Industry 4.0 challenges by adopting advanced technology solutions and focusing on green production.
Meeting ESG goals
As employees and consumers put pressure on businesses to be transparent about ESG objectives, manufacturers must take a proactive, enterprise-wide approach to environmental, governance and social issues in manufacturing.
Skill shortages and recruitment challenges
Although the skill gap still poses a problem for the industry, mass layoffs in 2022 have provided an opportunity for companies to fill gaps in their workforce. The future of manufacturing depends on addressing recruitment issues to build a reliable, diverse workforce.
Digitally transforming manufacturing for Industry 4.0
Advanced IT solutions and digital transformation in manufacturing have proven reliable in helping manufacturing companies meet their Industry 4.0 goals.
— 78 percent of CEOs feel the pressure to be quicker to invest in digital opportunities.
— Two-thirds say they feel that the challenge to choose the right technology holds them back from transformation.
KPMG works with local manufacturing, life sciences and automotive businesses to define and achieve sustainable transformation journeys.
This report provides insightful analysis and key projections for the future of Australia’s manufacturing sector. The information in this report is based on the results of KPMG International’s 2022 Global CEO Outlook, which was conducted with 1,325 CEOs across 11 key markets in July and August 2022. The insights from the CEO Outlook informed attitudes towards current market trends in the manufacturing sector.
How we can help
KPMG’s Manufacturing & Life Sciences group offers audit, tax and advisory services geared to the unique needs of these industries. Our team can help you create a clear vision and drive tangible results.
